Tesla cuts Model 3 price for second time this year

Gladys Abbott
February 7, 2019

"The need for a lower priced variants of Model 3 becomes even greater on July 1, when the U.S. tax credit again drops in half, making our auto $1,875 more expensive, and again at the end of the year when it goes away entirely".

Tesla is slashing the price of the Model 3 for a second time this year, days after rearranging the pricing and versions of the Model S and Model X amid mild price cuts.

In a reply to a Twitter user asking about when Tesla would drop the Model 3 base price to $35,000, without credits, Musk said, "We're doing everything we can to get there.

Tesla's price cut follows a cut of as much as $2,000 in January.

Tesla said in a statement that ending the costly referral program allowed it to cut the Model 3 price. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.

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If you go to Tesla's order page for the Model 3, you'll see the cheapest, rear-wheel drive with a mid-range battery starting at $34,850. "It's a super hard grind", he wrote.

The price drop is another in a series of reductions made by the EV maker, the last of which occurred in the new year when Tesla's United States federal tax credit was reduced by half from $US7,500 to $US3,750.

The program, that ended at the beginning of February, gave new buyers six months of free charging as well as prizes for existing owners.

The Model 3 Long Range Dual Motor now starts at $49,000, while the Long Range Dual Motor Performance fetches $60,900.

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